Congress this week passed a budget outline that calls for more than $200 billion in new taxes over five years. The plan is based on letting many of the Bush tax cuts expire including the lower income tax rates and the lower 15% tax rates on capital gains and dividends. These taxes would go up.
The plan adds $22 billion to the President’s budget. Discretionary spending is expected to reach 19% of GDP which would be a 40-year high.